Business Law

As our unemployment rate grows, many people are considering forming their own business. When you begin your own business, the first decision you will be faced with is what type of business to form. Some of the different types of organizations include: sole proprietorships, general or limited partnerships, corporations, limited liability corporations and professional corporations. Each of these different entity types vary greatly from one another in connection with the level of protection offered the owner from personal liability. Quite often tax consequences will dictate what type of business is correct for you. Other things to consider when setting up your business include who will be the owners, directors, members and officers of the corporation.

In addition, it is important to contemplate the financial and operational limitations of the business as well as where and with whom you will they be doing business. Not only are the short term goals of the business important to consider, but the long term goals are important to consider as well. These include whether the principal will be liable for the obligations of the business, what assets the principal will transfer to the business, and also whether the business will continue to operate after the principal is no longer participating in the organization. To ensure the business goals are able to be accomplished, some of the documents that need to be drafted include by-laws, operating agreements, shareholder agreements, employment agreements, employee manuals, severance agreements, and federal employer identification numbers.

At Franks, Gerkin & McKenna we are a full service law firm practicing in the areas of Personal Injury; Worker’s Compensation; Bankruptcy; Real Estate; Zoning; Wills’ Estate Planning; Probate; Divorce/Family Law; Criminal; Traffic and of course, Business Law.